Turkish Lira to Weaken No Matter Who Wins Elections, Bank of America Analysts Say
- The bank estimates lira fair value at around 24 per US dollar
- They say a currency depreciation of 15% to 25% is needed
A currency exchange bureau in Istanbul.
Photographer: Erhan Demirtas/BloombergThis article is for subscribers only.
Bank of America Corp. analysts say the Turkish lira will weaken regardless of who wins the election in May.
If the opposition wins, markets will see big swings until the new government announces a new economic framework and fill key posts in the administration, analysts including Zumrut Imamoglu wrote in a report on Thursday. If President Recep Tayyip Erdogan’s administration holds on to power, the lira may see a “disorderly depreciation,” they said.